The idea is brilliant; tap in to your users upload capacity to distribute your product across the Internet more efficiently.
If you have a killer product that your customers are downloading, the distribution (bandwidth) costs will increase proportionally with the amount of customers. This may be ok if the product is commercial and you can transfer the distribution costs to the cost of the product.
If on the other hand it is a free-ware product, lets say an open source application, you may find it hard to finance the popularity of the project.
Tag: network
Friendster – are you a friend of my friend?
Networking sites are very popular at the moment and are one of the very few types of online activity that are attracting VC investment. Friendster is no exception and has already attracted around $25 million while still being in beta mode.
The growth of its user base has been amazing: from 0 users in March this year to over 2.3 million users at the moment and growing fast. See Stefan’s article for a deeper analysis of the service.
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